BLOCKCHAIN
THE FUTURE OF BLOCKCHAIN
So , while blockchain ’ s path to mass use in traditional financial services is still a bit murky , the standardisation of blockchain-powered financial assets , such as CBDCs , is something Kubli feels we are destined to see .
He adds : “ As regulations tighten , any assets that don ’ t embrace standardisation will be at risk of noncompliance . There could be exceptions , of course , but any projects that want to be adopted by major financial players will likely adopt this approach .
“ Once implemented , tokenised financial assets can bring in improved liquidity and new forms of financing for the entire economy .”
Sidhu agrees , saying the timing of when tokenised financial assets hit the market will depend on the institutional sector . “ Wall Street firms such as JP Morgan Chase , BlackRock , Fidelity and Goldman Sachs are defining their approach to blockchain technology , while 114 countries including the UK and US are exploring CBDCs .
“ Tokenisation of real-world assets could one day be a multi-trilliondollar market . However , if blockchain and crypto are to become the norm in the future , strides in regulatory harmonisation , standardisation and technology are required .”
Notwithstanding the perks of PoS models , a switch in mining models is just one barrier to scalability . As Greiff notes : “ Blockchain can ’ t meet some of the transaction throughput or analytics requirements that companies have .
“ For example , Bitcoin has around 19.3m coins and sees 500,000-650,000 global transactions per day . Ethereum reached a maximum of 1.9m transactions on one day but tends to be around the 1.2m transactions per day level globally .
“ In comparison , banks , retailers and payment systems providers cover billions of transactions per day , which is an order of magnitude higher .”
To reach the next level of scale , blockchain platforms must innovate ways to
108 August 2023